The age limits and types of contributions that can be made have changed a few times over recent years. However, with an aging population and a society that has been working for longer , the trend has been that the ability to make and receive contributions has become more flexible.
Age Limits For Super Contributions
The following will discuss the different age brackets relevant to making and receiving superannuation contributions, as well as the types of contributions that each age bracket is able to make or receive.
While contributing to superannuation does provide tax advantages and allows you to build your retirement nest egg, you should consider that such contributions will be inaccessible until you meet a superannuation condition of release. Generally, the first time that you will be able to access your superannuation benefits is once you have met your superannuation preservation age, currently being phased up from 55 to age 60, as well as permanently ceased work with no intention of returning to full-time or part-time work. However, you can have limited access to your savings after reaching your preservation age while still working, via a transition to retirement strategy.
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Super Contributions For Members Under Age 65
People under age 65 are unrestricted with the type of contributions that they are able to make to their superannuation account. Employer contributions, salary sacrifice contributions, personal deductible (Concessional) contributions, after-tax (Non-Concessional) contributions and spouse contributions are all permitted to be made by individuals under age 65 and accepted by the receiving superannuation fund.
Super Contributions For Members Aged 65 or Over, But Under 70
Your employer can make mandated employer Superannuation Guarantee contributions into your superannuation account without restriction. However, the superannuation work test must be met in order for other types of contributions such as salary sacrifice contributions, self-employed contributions, personal non concessional contributions and spouse contributions to be made. Further, the work test must be met in the financial year that the contribution is made and must be met prior to the contribution being made. In regard to spouse contributions, the receiving spouse must meet the work test.
Super Contributions For Members Aged 70 or Over, But Under Age 75
This age bracket for superannuation contributions has the same rules as the 65-70 age bracket, above, with one small difference; spouse contributions are unable to be accepted by superannuation funds.
Super Contributions For Members Aged 75+
So here’s where it gets brutal. The only contributions that can be accepted by a superannuation fund on behalf of a member are mandated employer SG contributions or award contributions, without restriction. All other types of contributions are unable to be made or accepted.
Read more about superannuation rules for people over age 65 years.
Summary of Age Limits For Super Contributions
|Contribution Type||Under 65||65-69||70-74||75+|
|Mandated SG or Award||No Restriction||No Restriction||No Restriction||No Restriction|
|Salary Sacrifice / Self Employed||No Restriction||Must Meet Work Test||Must Meet Work Test||Cannot Be Accepted|
|Personal After-Tax Contributions||No Restriction||Must Meet Work Test||Must Meet Work Test||Cannot Be Accepted|
|Spouse Contributions||No Restriction||Receiving Spouse Must Meet Work Test||Cannot Be Accepted||Cannot Be Accepted|
New Superannuation Rules from 1 July 2017
There are new rules coming in as of 1 July 2017 as a result of the 2016 Federal Budget. These changes are significant and may affect your ability to contribute to superannuation. For more information read this article.